Moxx of Balhoon Ltd is a small car repair company. Its directors are Cassandra and Tobias....

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Moxx of Balhoon Ltd is a small car repair company. Its directors are Cassandra and Tobias. On 10th October 2020 it goes into liquidation. Rose Tyler is appointed liquidator. You act for Rose and have found out the following information: On 10th October 2020 Moxx of Balhoon Ltd owned only two assets: a garage, and a collection of repairing tools. It was owed money by several businesses in the neighbourhood. Moxx of Balhoon Ltd had granted a floating charge in favour of the Bank of Boe plc when the company was set up in January 2013. The garage was subject to two standard securities: one in favour of the Bank of Boe registered in the Land Register in January 2013; and one in favour of Geocomtex Ltd registered in the Land Register in May 2020. Geocomtex Ltd had provided Moxx of Balhoon Ltd with computer equipment in 2018. Moxx of Balhoon Ltd had not paid for the computers and were persuaded by Geocomtex Ltd to grant the standard security in April 2020 when Geocomtex Ltd worried about Moxx of Balhoon Ltd's solvency. Moxx of Balhoon Ltd had owned a van, a tow truck, computers, and other office equipment. However, in January 2019 the van and tow-truck were sold to Cassandra for 50, considerably less than they were worth. The computers and office equipment were given to Tobias in April 2020 as a birthday present". You are to advise the liquidator. Consider (a) what assets are covered by the liquidation? (b) can any transactions or securities be set aside, and why? (c) which creditors should be paid first (ie what is the order of priority of payments from the company's assets)? Moxx of Balhoon Ltd is a small car repair company. Its directors are Cassandra and Tobias. On 10th October 2020 it goes into liquidation. Rose Tyler is appointed liquidator. You act for Rose and have found out the following information: On 10th October 2020 Moxx of Balhoon Ltd owned only two assets: a garage, and a collection of repairing tools. It was owed money by several businesses in the neighbourhood. Moxx of Balhoon Ltd had granted a floating charge in favour of the Bank of Boe plc when the company was set up in January 2013. The garage was subject to two standard securities: one in favour of the Bank of Boe registered in the Land Register in January 2013; and one in favour of Geocomtex Ltd registered in the Land Register in May 2020. Geocomtex Ltd had provided Moxx of Balhoon Ltd with computer equipment in 2018. Moxx of Balhoon Ltd had not paid for the computers and were persuaded by Geocomtex Ltd to grant the standard security in April 2020 when Geocomtex Ltd worried about Moxx of Balhoon Ltd's solvency. Moxx of Balhoon Ltd had owned a van, a tow truck, computers, and other office equipment. However, in January 2019 the van and tow-truck were sold to Cassandra for 50, considerably less than they were worth. The computers and office equipment were given to Tobias in April 2020 as a birthday present". You are to advise the liquidator. Consider (a) what assets are covered by the liquidation? (b) can any transactions or securities be set aside, and why? (c) which creditors should be paid first (ie what is the order of priority of payments from the company's assets)?

Answer rating: 100% (QA)

Dear Rose Tyler Thank you for providing the details regarding the liquidation of Moxx of Balhoon Ltd As the liquidator of the company I have carefully ... View the full answer